Households tighten belts

 

Households are demonstrating remarkable resilience in the face of mounting economic pressures, adapting their spending habits and seeking alternative income streams to stay afloat. Yet, despite the squeeze, a striking 71 percent of consumers remain optimistic that their household income will increase over the next 12 months, according to the latest Consumer Pulse Survey by TransUnion. Released this week, the third quarter of 2026 survey reveals a challenging financial landscape.

The proportion of respondents reporting a decline in household income over the previous three months rose to 39 percent in 2026, up from 30 percent last year. Consequently, 39 percent of consumers now anticipate difficulty paying at least one current bill or loan, a significant increase from 34 percent in 2025. To cope, Batswana are getting creative. Among those expecting financial strain, 43 percent plan to make partial payments on their bills, while 38 percent are turning to temporary or gig work to supplement their incomes.

Another 26 percent are dipping into savings or borrowing from friends and family. “What stands out in this quarter’s findings is the determination of Botswana’s consumers to remain financially resilient,” said Kabelo Ramaselwana, Chief Executive Officer of TransUnion Botswana. “Households are making deliberate decisions about spending, looking for opportunities to supplement their income and focusing on maintaining financial stability.” This caution is highly visible in consumer spending.

Nearly three-quarters (73 percent) of respondents reported slashing discretionary spending on dining out, travel, and entertainment. Furthermore, 39 percent have reduced digital services like internet and cable, and 40 percent have cancelled subscriptions or memberships. Despite tightened purse strings, access to credit remains a cornerstone of financial planning, with 96 percent of consumers deeming it essential for long-term goals.

However, a cautious mindset has taken hold. Intentions to apply for new credit or refinance existing debt plummeted by 15 percentage points to just 25 percent. Applications for personal loans and mortgages have seen notable declines. Confidence in credit accessibility has also weakened, with only 36 percent feeling they have sufficient access to lending products. In the digital realm, a concerning paradox has emerged.

While the overall proportion of consumers targeted by digital fraud dropped to 68 percent, the number of actual victims rose from six percent to eight percent. Fraudsters are increasingly evolving their tactics, relying heavily on sophisticated phishing (47 percent) and voice-phishing (46 percent) scams. In response, consumers are becoming more proactive. While changing passwords remains standard, the proportion of consumers checking their credit reports for fraudulent activity surged from 14 percent to 23 percent.

“Botswana’s consumers are navigating the current economic environment with resilience and adaptability,” Ramaselwana noted, emphasizing that informed consumers will be best positioned to capitalize on future opportunities. The survey polled 183 adults in Botswana between July and August 2026.